Process for buying a new home starts, once you finalize your home requirement. Frankly speaking, buying a new home is not an easy-peasy thing. It will take a lot of time and effort to finalize it. After all, it is a matter of your many years of hard-earned saving money and efforts. Here is an essential home checklist of all important aspects or points that one should check/consider while selecting any property for your dream home.
It is really important to understand many things before you finalize your dream home. In the below article, we will consider all important aspects that will affect your decision, so that you need not regret it later.
- Essential home checklist #1: First make a budget for buying a Home
- Essential home checklist #2: Calculate Loan & EMI
- Essential home checklist #3: Finalize your dream property
- Essential home checklist #4: Property location
- Essential house checklist #5: Construction quality check
- Essential house checklist #6: Property should not have any dispute
- Essential house checklist #7: Check for basic amenities and security
- Essential house checklist #8: Surrounding locations and neighbourhood
- Essential house checklist #9: Future potential of property
- Essential house checklist #10: Vastu compliant home
- Essential house checklist #11: Obtain NOC against previous loan
- Essential house checklist #12: Obtain NOC against Govt/other authorities
- Essential house checklist #13: Finalize builder buyer agreement
- Essential house checklist #14: Property registration and stamp duty
- Essential house checklist #15: Handover of Property
- Frequently asked Questions
Essential home checklist #1: First make a budget for buying a Home
First thing first, make a budget for your dream home. After all money matter the most. For this, first, check how much savings you have and how much you can arrange with your friends and relatives before looking for a loan option. It is conventional but helps you to reduce interest liability if you have taken a loan from your friends and family members. After considering all such things, you can easily imagine your total budget and accordingly select an apartment, Villa, or independent floor at that price.
Essential home checklist #2: Calculate Loan & EMI
Once you calculate your total budget, please calculate your estimated home loan and EMI also well in advance. This calculation is very easy with the help of a mortgage calculator.
For calculating EMI, you need to consider three things: –
Total estimated loan amt
Period for which you need a loan
Now with the help of a mortgage calculator, you can calculate your future estimated EMI. It will help you to understand how much you need to pay every month if you take this much of loan amt.
Now a day, you can take pre-approval for a loan without selecting any property. In India, various leading banks like SBI, HDFC, etc. are offering this facility.
Essential home checklist #3: Finalize your dream property
Now it comes to selecting a property. Now are days, you need not worry too much about that as there are many online supports available. For this, you can check out different property listing sites. It will help you get more detailed information about location, price, pros, and cons of property, builder reputation, builder previous project track record, and much more.
Before you finalize any such project, please make sure builder reputation, overall project layout plan, date of completion, and amount need to pay each milestone. For more detail, you can also visit the builder’s office and the actual construction site.
Essential home checklist #4: Property location
Property location is playing a key role in your decision as it will affect you in long run. In a centralized location, the price is much high than property located in an outer location, but you get most of the things nearby. Similarly, you may be getting cheaper property in outer location, but you need to travel a lot for most things.
Please consider the following things before making any decision: –
Distance between your office/workplace and proposed property
The total distance between an airport and the proposed property
Distance between super-market and proposed property
A distance between School/Hospital and proposed property
Mode of transportation between proposed property and important places.
It is very much required that property location ideally must be nearby of various important places, but cost efficiency is also very important. In India, Metro is growing rapidly speed in all major cities. So, while selecting a property, you must consider the nearest metro station if it is available in your city.
Essential house checklist #5: Construction quality check
Another important thing you must know before taking the final move is a quality check. You should ask the builder to share quality check detail as it is necessary for your own safety assessment. Normally most people ignore it or rely on the builder’s word. Please do check building strength more precisely if your city is in seismic zone III & above. After this, please check things like the quality of construction material used, brick wall, electrical wiring, tiles, door & window, and grillwork. Further, you can check the interior and exterior paint, other utility items. For this work, you can take help from experts.
Essential house checklist #6: Property should not have any dispute
While finalizing property, please check that there should not be any dispute. Disputed property should be avoided otherwise in the future; you will be in trouble. Please get all No objection certificates (NOC) from the owner.
Essential house checklist #7: Check for basic amenities and security
Please check what kind of civic amenities are provided by builders, if you are looking for property in society. Check status with the builder regarding security, parking lot, open green area, power backup, lift, community hall, etc.
If you look for a property in other areas, then check who you manage these requirements.
Essential house checklist #8: Surrounding locations and neighbourhood
Please have a look around the surrounding location and neighborhood before finalizing the property. Please try to get feedback from the people who live in the surroundings. It is important to know as it will help you to assess that location. After all, a location is recognized as good or bad by the behavior of the people that live around it. Please try to meet people who live around or in your society.
Please check that such location is not nearby factory or industrial unit. If a factory or industrial unit is situated nearby a location that it will impact on air quality of that area. Try to avoid such areas which will affect you especially your children.
Essential house checklist #9: Future potential of property
Before finalizing any property option, it is always advisable to check the property’s future potential. How much property will appreciate in the next five years or decades? What will be the rental value if you don’t want to live there and want to rent out? This will help you to know the future potential of a property.
Sometimes you buy a property just considering present value. After purchase, we come to know that this location is not good for property appreciation or rental value is quite low, or no tenant available. Try to figure out all such issues before making any decision.
Essential house checklist #10: Vastu compliant home
Now a day, Vastu is a hot topic, and people look for it before buying property. Many builders offer Vastu compliant homes now a day as It is very much relevant in India. It is an ancient science that describes the most beneficial location for your bedroom, living room, dining room, kitchen, and other important things like a staircase, toilet, etc. It is believed that Vastu complaint home brings more happiness and prosperity in your life.
So, if you believe in Vastu it is better to choose a property with Vastu compliance.
Essential house checklist #11: Obtain NOC against previous loan
It is better to check whether the said property has any debt or liability. If it is a resale property, check whether the owner has taken any loan against that property. If so, then ask the owner to obtain a no-objection certificate (NOC) from a lending bank or financial institution. Even in the case of a builder, it is advisable to check any liability associated with said property.
Essential house checklist #12: Obtain NOC against Govt/other authorities
In case of resale property check with other govt agencies such as the Electricity board, Waterboard, and municipal authorities for any kind of dues or pending associated with a proposed property like property tax, due electricity bill & water bill. Try to get all necessary clearance from govt authority to avoid any future liability. If you are looking to buy an apartment in society, then check with society for the status of the maintenance fee and any other dues like power backup charges.
Essential house checklist #13: Finalize builder buyer agreement
Once you finalize all issues and complete your all checklist points, you are ready to purchase your dream home. Now you need to check sale agreement documents. If you are buying a home with a builder, then usually the builder will complete all such formalities and prepare a builder buyer agreement. Once he completed all documents then he will inform the buyer to come for property registration at the sub-registrar office.
Essential house checklist #14: Property registration and stamp duty
Now you finalize your dream property and checked all related documents with satisfaction. Once the builder buyer agreement is ready, it is time for final step i.e. sale deed registration. For this purpose, the builder will ask you to come on a specific date to the sub-registrar office. On the same day, you need to deposit stamp duty at the sub-registrar office. The stamp duty rate will be different in different states and depend on two factors: –
1) stamp duty rate is lesser if the buyer is a woman.
2) stamp duty is calculated on property price or state govt fixed area rate whichever is higher.
In some states like Maharashtra (India), Stamp duty needs to pay first, even in the case of under-construction property; while north Indian states like Delhi, UP, Rajasthan, and Haryana stamp duty need to pay only at the time of final handover.
For registration, you need to present at the sub-registrar office and pay the required stamp duty fee before the sale deed is stamped and registered.
Essential house checklist #15: Handover of Property
Now in this final step, you need to take hand over your property. Please do care few important points before taking hand over.
First, do a final joint inspection with the owner or builder representative.
Make a checklist item-wise that needs to repair or replace and inform the builder.
Check all amenities and inform the builder if found faulty or out of order.
Collect all necessary documents like registered deed, all NOC, Builder Buyer agreement.
Apply for Power & water connection and attach all necessary documents.
Congratulations! Now you are the owner of your dream home.
So, friends, this is all about the essential checklist for every new home buyer. I try to cover all important points to clear all your doubt but still if you have any doubt, please do write in the comment box below.
Frequently asked Questions
Q. What are the most important things to consider when buying a home?
Ans. Home budget, Loan EMI, Property location & future benefits are the most important points to consider before buying a home.
Q. What you should avoid before buying a home?
Ans. Buying a new home is a long-term commitment as you need to pay EMI for the next 15 to 25 years as the case may be. Avoid any personal loan or any big amount expenditure before buying a home.
Q. How much money you should save before buy a home?
Ans. Ideally, you should save 20% of the total estimated budget amount of your new home but on the safer side, 25% is as good as most banks financed 80-85% of the total budget. If you have an additional amount, then you can pay the initial EMI also without pressure.